Abstract
We analyze a political competition model of redistributive policies. We show
that the net transfers to the income groups consist of two parts, called altruistic and electoral redistribution. In accordance with the theory, the empirical evidence from a sample of developed and developing democracies strongly supports a positive and significant association between: (i) the net group transfers and the initial income gaps, and (ii) the net transfers to the non-poor (and respectively, the after-tax Gini coefficient) and power sharing disproportionality.
that the net transfers to the income groups consist of two parts, called altruistic and electoral redistribution. In accordance with the theory, the empirical evidence from a sample of developed and developing democracies strongly supports a positive and significant association between: (i) the net group transfers and the initial income gaps, and (ii) the net transfers to the non-poor (and respectively, the after-tax Gini coefficient) and power sharing disproportionality.
Original language | English |
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Publication status | Published - 30 Dec 2017 |
Keywords
- Income Redistribution
- Fairness
- Ideology
- Electoral Rules
- Power Sharing
- Income inequality